Cisco’s $600M Acquisition of Luxtera to Close in Q3

Cisco today in a report has announced that they are not intended to acquire the privately held Luxtera Inc., a semiconductor company based out of California, that uses the silicon photonics to build the integrated topics capabilities for the webscale and enterprises data centers, customer and service provider market segments. Luxtera technology, manufacturing and design innovation improves up the chip scale and performance while lowering down the costs. Cisco plans to incorporate the Luxtera technology across its intent based networking portfolio, data center, spanning enterprise and service provider markets.

The Executive Vice President and General Manager of the Networking and Security Business at the Cisco said that with the Cisco 2018 Visual networking Index projecting that the global internet traffic will be going to increase the threefold over the coming five years, and the customers are facing an exponential demand for the internet bandwidth. The company revealed that Optics is a fundamental technology to enable this future. Coupled with the silicon and optics innovation. Luxtera will allow the customers to build the fastest, biggest and most efficient networks across the globe.

Cisco will pay around $600 Million cash and assumed equity awards for the acquisition deal of the Luxtera. The acquisition is also expected to close in the third quarter of the fiscal year 2019, with the subject to customary closing conditions and required regulatory approvals as well.

The acquisition will help the Cisco for the future proof network for the Emerging Applications, as the emerging class of the distributed mobility, cloud, and IoT applications is creating with an unprecedented strain on the existing communications infrastructure. The integration of the Cisco and Luxtera capabilities in the 100GbE/400GbE optics, process technology, and silicon will enable the customers to build the future proof network optimized specially for the reliability, cost and high performance.

The deal will also going to help the Cisco to expand the 100GbE and 400GbE portfolio, as the integration of the Cisco and Luxtera optical transceiver portfolio will going to broaden Cisco offering of the 400GbE and 100GbE optics. As system port capability increases, optics plays an increasingly vital role in addressing up the network infrastructure constraints, particularly the power requirements and density.

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